Budget burning point: How Austria wants to avoid debt trap!

Budget burning point: How Austria wants to avoid debt trap!

Österreich - The financial situation of Austria is becoming increasingly critical. The new finance minister Gunter Mayr is in the Zwickmühle, because the exact numbers about the budget deficit are long in coming. As the Krone , a definitive insight into the financial grievances will only be specified in mid -December. A deficit of over 15 billion euros is currently suspected, but whether the situation is even more serious remains unclear. The EU provisions demand that the debts do not exceed the magical limit of 3 % in 2025, otherwise a deficit procedure threatens with possible punishments.

controversy about the budget forecasts

A central point of dispute is the forecast of the Austrian Institute for Economic Research (WIFO), which sees the causes of the increased deficit in a missed growth forecast. Wifo boss Gabriel Felbermayr replied that the revision of the economic predictions is not based on manipulation, but on the dramatic development in Germany. The finance minister himself described the situation as serious, since the consumer retention of the citizens also contains the budget planning, as he was in the parliamentary website clarified. Here it becomes clear that the uncertainty in the country leads to a decline in income, which still exacerates the situation.

The political reaction to the budget problem is diverse. While the ÖVP is promoting austerity measures, the SPÖ contradicts and warns of cuts for citizens, pensioners and consumers. The NEOs are willing to compromise, but are calling for basic reforms, especially in the pension area. The green are pushing for a sustainable economy, and the FPÖ vehemently criticizes the previous government, which in its opinion has undermined the country's economic foundation. In this tense situation, Mayr has the responsibility to present a package of measures until mid -January that Brussels must convince in order to avoid a deficit procedure.